Exercise 23-13 Flint Inc., a greeting card company, had the following statements prepared as of December 31, 2017 FLINT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Accounts receivable $6,000 $7,100 61,400 51,500 Short-term debt investments (available-for-sale) 34,600 18,000 60,200 4,000 152,400 130,600 Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets 40,300 4,900 (34,800) (25,200) 49,800 $310,500 $296,000 45,700 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,100 $40,300 6,000 4,000 8,100 10,000 59,700 69,600 100,000 100,000 30,000 54.700 36,100 $310,500 $296,000 4,000 7,900 30,000 FLINT INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 $333,450 174,300 159,150 118,800 40,350 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $11,600 2,000 9,600 30,750 6,150 $24,600 Additional information 1. Dividends in the amount of $6,000 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2017. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a sign e.g.-15,00in parenthesis e.g. (15,0oo). FLINT INC. Statement of Cash Flows